Are you looking for the best home loan rates that don’t include unnecessary markup or junk fees? Did you know that wholesale mortgage rates can save you thousands of dollars per year in unnecessary finance charges? Most brokers will tell you that you can’t get wholesale rates for your next home loan because their commission is at stake; however, it is possible to pay a flat origination fee of just one percent and walk away from the closing table with the best home loan rates. Here are several tips for refinancing your home with the best mortgage rates without paying for unnecessary markup or junk fees.
Best Home Loan Rates Online
The problem with refinancing your home loan online is that everyone’s trying to make a buck at your expense. They’ll charge you a fee for loan origination, slip in hundreds if not thousands of dollars in junk fees and then mark up your mortgage rate to get a commission from your lender. This unwanted markup of your mortgage rate drives up your monthly payment unnecessarily and leaves you with less cash in your pocket at the end of the month. Avoid this unwanted markup and you can get a wholesale mortgage rate for your next home loan.
Mortgage Yield Spread Premium
How does this markup of your best home loan rates work? The fee mortgage lenders pay for brokers who lock and close home loans with higher than necessary interest rates is known to the fat cats as Yield Spread Premium. Lenders pay this fee as an incentive for overcharging you. This fee is paid because lenders make the majority of their profits selling home loans to investors as mortgage backed securities and home loans with higher than market interest rates bring them a premium profit.
The problem with this unwanted markup of your home loan rate is that it drives up your monthly payment by hundreds of dollars in addition to the loan origination fee you’re paying the person arranging your home loan. Did you know that for every .25 percent that you unknowingly overpay the person arranging your home loan pockets one percent of the loan amount? This is of course in addition to the loan origination fee you’re probably overpaying for their services.
Yield Spread Premium & Junk Fees Can Be Avoided
You don’t have to be a personal finance guru to get the best home loan rates, you just have to find the right person to arrange your next home loan. Start by telling prospective brokers that you understand how the commission based markup of the best home loan rates works and will not accept any quotes that includes the markup. Offer to pay a flat fee of one percent for loan origination and you’ll be well on your way to finding the best home loan rates. Find the right broker to arrange your next home loan and you’ll not only avoid the unwanted markup that drives up your payment but junk fees at closing.
You can learn more about getting the best home loan rates without paying unnecessary markup or junk fees by checking out my free Underground Mortgage Refinancing Videos.
Here’s a quick video to get you started uncovering your broker’s dirty secret that’s keeping you from the best home loan rates.